OTIRA TUNNEL.

Dominion, Volume 6, Issue 1584, 30 October 1912, Page 5

OTIRA TUNNEL.

THE CONTRACTORS' PETITION

DEBATE IN PARLIAMENT.

STATEMENT BY MINISTER.

The report of the Select Committee of tlio Houso of lleproseutatives, which was set up to review tho petition of M'l,cnn Brothers for release from their contract to construct Hie Otira Tunnel, was discussed in tlie House of Kenrcswitatives yesterday.

llr.'E. P. Lee (Onmaru) chairman of tho Committee, briefly reviewed the evidence. Tho amount spent on tho railway, ho said, was £1,W2,U13, and if tho line was not completed there would bo a dead lons to (lie Dominion year after year of interest on that money. In regard to tho work itself, ho thought tho estimate- of tho Public Works Department was an entirely erroneous one. Such a big work could not bo carried out at a cost of .£500,000. As to wages, it was clear that the work was unattractive, and a man could not give the same amount of work in a day that ho could in a shorter tunnel, where the air and the conditions were better than in a long tunnel. The contractors estimated that it would cost them .£130,000 to .£l*lo,ooo over and abovo their tender to complete tho work. Tho effect of the Committee's recommendation was that if tho amount due to -tho contractors for the completed work was sot against the amount advanced, and tho deposit of JCSOOO was returned, the contractors would bo paid ,£l9B over and abovo the value of their work, and the sureties could bo released.

A West Coast Member. Mr. T. B. Y. Seddon (Wostland) expressed a liopo that thu debate to follow would be conducted in a national and not in a parochial spirit. Mr. Jlassoy: There is no question of party in this. Mr. Seddon said that tho repo-t would bo pleasing to the people on the West Coast and in Canterbury, mid should be pleasing to people throughout tho Dominion. Trade on the West Const was to a great extent blocked at present. AVhen the tunnel was completed enough traffic would pass through it to pay interest on the cost of the line. The fact that there had never been a full complement of men at Otira was not a fault of tho contractors or anybody* It was the fault of the country through which tho tunnel passed. Tho contractors would incur a dead loss of .£53,000. There was an incorrect impression that tho M'LoansJiad been hindered in carrying out their contracts by agitators going down to Otira. The fact was that tho nature of the work, together with tho cold and isolated situation, had deterred the best class of labour from going to Otira. Ho urged the Government; to call fresh tenders, and in any caso not to let the work cease even for a day.

To Stop Impossible, Sir Joseph. Ward (Aworua) said that ,£977,000 had been spent upon tho railways on either side of the tunnel. It was altogether too Into to discuss whether or not this very important railway should be prosecuted. This question had been settled lons ago. The cost of the Midland line,-including tho amount written off by tho Midland Railway Company, was .£1,800,000. There was no doubt fhat labour troubles at Otira had been a factor in bringing about the present position. It was always a delicate and difficult tiling to adjust a contract, Uit if the Otira contractors were pushed they would bo forced into liquidation, and tho whole of tho works would bo brought to a standstill, probably for six months at least. There was a balance of £44,000 unpaid on plant, which would remain on tho job for the use of a subsequent contractor or of ttio Government. This was an important clement, to his mind, and reconciled him to tho proposal to return to the contractors their deposit of .£SOOO. Experience had shown that five years was not a/sufficient period in which to carry out a contract of this nature. Tho report of the committee was, upon the wholo, a fair one. It would be a mistake, in tho interests of the country, to suggest stopping this work. "Be Merciful to the Contractors." Mr. J. Bollard (Eden) said it was quit* evident that tho Government Engineers wero entirely at sea when tlioy estimated tho cost of tho work nt £500,000. The contract should have been for £700,000, or perhaps £50,000 more. As to the labour conditions ho did not think the conditions were much harder than in a gold mine, but tho men wero determined that (hey would get a pretty big slice of the £100,000 over aud above tho estimates, which they reckoned would be tho contractors' profit. He thought, under all tho circumstances, the House should be merciful to tho contractors. They had gono into this matter in good faith, and were now absolutely ruined. He thought they should give them £15,000 or £20,000 and cry quits.

The Hon. D: Butldo (Kaiapoi) said there was no doubt that the. contractors hart met -with -unexpected difficulties. Ho urged that from a defence point of view, the line should bo completed. ' Mr. H. J. Okey (Taranaki) said there was no doubt that the Labour agitators had interfered with the work on the contract. It would toko ,£150,000 to complete the work, and though ho was a North Island member he thought tho work should proceed. They would bo the laugh-ing-stock of the contractors if they allowed a million and a half already spent oh tho lino to lie idle. Ho hoped tho contractors would l>o given a chance to rctender for tho work, and so mako up somo of tho loss that had already fallen upon them. Ii the House decided to go on with Hmj work oh co-operative-lines, it would tnko seven to ten years to finish it. Tho M Loans had tho experience, and (hey had tho plaut. They had tried their utmost to carry out ihe work and had not shirked it in any way.

Mr. A. M. Myers '(Auckland East) said tho contractors had dono all they cAuld in a bona fido manner to cany out. their contract. The question was not now whether or not tho work should havo been undertaken, but whether, under all tho circumstances, the work should bo proceeded with. He favoured tho recommendations of tho committee.

Wasto of Public Money, Mr. W. C. Buchanan (Wairnrapa) thought the question of whether or not work should ever have been undertaken did concern the present position to f-omo extent, lie had always opposed such a waste-of public money. Tho traffic on the lino would involve the country in a serious loss. Tho consideration given by tile committee was totally insufficient to warrant tho adoption of the committee's report, and the Government would not be justified in going on with the work without getting further export evidence. Tho Hon. W. Frascr (Miuister for Public Works) differed from tho last speaker. The question now was, he said, what they were going to do in regard to tho contract; as to whether or not tho work should be gone on with, that was a matter for tho Government to decide, and it bad no desiro to shirk its responsibility. Ho felt sure the great majority of tho House felt that, under all tho circumstances, Die last pound of flesh should not, bo extracted from the contractors. Some doubts had been expressed as to whether tho Public Works Department could satisfactorily carry, out tlio v.-oik. Ho had no doubt whatever on the point. There were engineers in llio employ of tlio Public Works Department who were quite competent to carry it out. If it were forced upon the Government to do the work in this way, he had no fear whatever of the result. (Hear, hear.) lie believed it could 1)0 done, but as Minister for Works he confessed that he would rather seo tho work in tho hands'of a capable contractor. That, however, was a matter for Cabinet to settle, and Cabinot would do its duty to tho country, and with fairness and justice to the contractors, who had suffored such loss. I Mr. J. Colvin (Bnller) thought the Min--1 i.stcr for Public Works hnd taken a very wise view of tlio case. He hoped the Government and tlio House would soe that tho money already spent on tho line would not bo allowed to bo idle.. However, tho work was to l>o dono by a contractor or by the Public Works Department, it certainly ought to bo done. He hoped the House would not deal too ;■ hardly with the contractors', who had lost tlicir money in their attempt to carry out their obligations. The Duty of Taxpayeri. .Tho Hon. 11. M'Kenzie (Motueka) eaid I ho had no doubt as to the ability of tic

M'Lean Bros., nor did ho doubt that f«r a time, at any rate, they had done 'their best to prosecute tho work but ho had felt for a long timo that worl; was being unduly delayed at the Ueaiey end, and no was of opinion tliat this had been dono for some reason not disclosed, 110 thought, also, that tho accounts, as presented to the committee, required very careful investigation, kit undue allowance should bo made for doubtful or unnecessary expenditure. Public opinion would demand that tho lino should be finished, and ho did not believe nuyoiit else could finish tho lino more cxpo.litiously than tho ll'Lcan Uros. If Miitable arrangements could be made villi tie contractors, ho thought they could he left to go on with it. But he did not think it was any duty of tho taxpayers to mako a compassionate allowance- to Vnt M'l.eans. In any case, the business \viin duo which should have been settled by the Government with tho contractors, without reference to Parliament. It was unheard of that contractors should petition Parliament for releaso from an existing legal contract. Mr. Loe, in reply, said that tho member for Motucka considered that tins will a matter which should linvo been handled by tho Government, and not referred to a select committee. Tho petition had, however, been sent in in tho ordinary way, and had necessarily been referred to a committee. Tho work dono by the committeo would bo of considerable assistance to tho Government and to tho House in deciding this matter. It had been rumoured about that ono of tho guarantors for the sum of .£25,000 was a wealthy man, who should not be Teleased from tine contract. As a matter of fact, ono of tho guarantors was Mr. M'liOan (father of the contractors), since deceased, and tho other was a solicitor in Auckland. Hβ agreed with, tho member for Motueka that this wasia matter which should bo determined by tho Government, but tho evidence collected by tho committee would be of material assistance) to tho Governmeut in arriving at n determination. The report was referred to tho Govern ment for favourable consideration..